ABAC Siemens

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ABACSiemens
NO USE OR QUOTATION WITHOUT PERSMISSION
mCommerceResearch2003

• Dr. Robert Davis
• ABAC Visiting Professor
• University of Auckland
• r.davis_at_auckland.ac.nz

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Research Foundation

• MoU ABAC and Siemens Thailand 2002
• Academic research and independence
• Siemens Mobile facilitates access
• Infrastructure providers, network providers,
  content creators, content aggregators
• 29 Senior executive participants
• Executive interview program
• Transverse strategic and technology dimensions
• Puzzle Paradigm
• University of Auckland, New Zealand

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Market Momentum

• Transitory stage and competition is intense in
  voice market
• New entrant phenomena buying market share
• Not in mCommerce but creating a distraction
• Past failures create uncertainty
• Consumer trust in technology
• Industry confidence in return on investments
• Currently at next wave of investment
• Industry and consumer
• New service variants and killer applications?
• From black and white TO color, a key milestone
• Estimates of total market value vary widely
  (2003)
• 300 million to 1.8 billion baht (Growth rate of 5
  to 40 percent)
• Opportunity beyond Bangkok

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Business Models

• Traditional business model based on voice market
• Intense competition
• Pieces of the pie rather than customer-value
  orientation
• Market power and the myth of customer ownership
• Selling technology rather than redefining
  communication
• Poor focus on market niche opportunities
• Strangling the killer application
• Mass market solutions, poorly marketed
• Rushed to market with little understanding of the
  definition of what creates value for consumers
• Towards building brand rather than technology
  platforms
• The mobile experience a continuous dream for
  the consumer

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Market Evolution

• Customers are moving through many transitions of
  learning
• Some examples,
• Internet and mobile
• Offline to online
• Voice to data
• High price to low price
• Status to commodity
• Mass to niche
• Risk of confusion and boredom and less than
  optimal experience
• See the market as a learning processes
• Play and fun are the catalysts to market
  evolution
• The key to the relationship

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Industry Collaboration

• Quality of service
• Marketing expenditure
• Open systems and future technology development
• Language of choice
• Market knowledge and evolution
• Microsoft's threat and potential industry
  dominance
• Pricing solutions for the sensitive market
• Consumer privacy and respect

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Disloyal Customer

• Customers are variant and impulsive
• Loyalty remains with the
• Content and delivery mechanism (e.g., ring tone
  via IVR)
• Communication drivers, particularly the group
  demands
• Not with the service provider
• Brand awareness but no relationship
• Content
• Multiple layers of content with different
  meanings
• Constant change in content needs (hourly, daily,
  weekly)

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Market Focus

• Traditional market segmentation?
• Move towards the niche
• Teenagers and student
• Career developers
• Gender
• Bored and word of mouth
• Group facilitators
• Impulse fingers
• TV watchers
• Corporate solutions
• Niches rapidly evolving and changing its needs
  and characteristics
• Think also about niche context and movement

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Relationships

• Over emphasis on transactional (short term)
  marketing
• Transactions are for today and are inherently
  reactive
• Relationships are the future together
• Deploy both to create strategic synergy
• Learn from the Internet and banner advertising
• Classic imbalance between short term and long
  term strategy
• mCommerce is predominately used to build
  relationships

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Killer Applications

• The big mystery, so looking into the crystal ball
• Ambiguous with no clear direction
• Variation across niche borders
• Inconsistency across niche markets
• Killer applications, some examples
• Internet email, browser, file transfer
• Mobile data SMS
• The brand and not the technology
• A killer app enables behaviour

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Enabling Value

• What consumers seek in their mCommerce experience
• Plain fun
• Relieving boredom
• Consumer to consumer interaction
• Fashion and fad
• Playing around
• Family and friends
• Impulse satisfaction
• Esteem building
• Consumers dont use mCommerce they just do it (on
  impulse)
• Simple to learn
• Easy to use
• Good synergy between product and service
• Service brand promise regarding the mCommerce
  experience
• Technology process and the physical mobile device

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Consumer Values

• Contact with family
• Intimacy with love
• Play with friends
• Indirectness in communication
• Building and maintaining face
• Group interaction and reinforcement

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Market Communication

• Significant value in marketing communication
• Not clear whether
• Push message risk of intrusion and annoyance
• Pull information initial interest then boredom
• Definitive cost for the marketer for each message
• Current thinking is dominated by mass marketing
• Internet experience suggests alternatives

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Community Communication

• Communication is dominated by movement
• The medium is the personal context and space of
  the user
• Bus, home, group, TV watching
• Contextual and context may define the niche
• Characteristics
• Personal and Indirect
• Family, community-based, emotive and feeling
• Receiver moderation
• Facilitation oriented
• Easy and Play seeking
• Interactive and gift oriented
• Clear value gained by consumer to interact with
  marketer

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Interactive Dialogue

• Traditional content providers rising from the
  internet ashes
• Consumer interacts with many channels of
  communication concurrently
• Possible receive send mechanism
• Traditional media providers
• Package content more effectively for mobile
• Greater control and flexibility of content
• Intimate knowledge of customer behavior
• Using interaction through mobile to track
  effectiveness
• Intellectual ownership has revenue benefits
• Offline appears to be effective and flexible
• Content aggregators struggle with their Internet
  origins

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Internet vs. mCommerce

• eCommerce/Internet
• Home Work Based
• Physical
• Free
• Disjointed interaction
• Content overloaded
• Endless
• Insecure
• Informational
• Anarchy
• Transactional
• B2C, B2B etc
• Serious goals

• mCommerce
• Personal context
• Flexible
• Pay
• Seamless interaction
• Content adapted
• Defined personal space
• Network gatekeeper
• Emotive
• Control
• Relational
• C2C, WOM, M2C
• Fun goals

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Keys Points

• Building market momentum and business model
• Understand the impacts of service evolution
• Niche market focus and servicing the shared
  customer
• Collaboration not competition
• Brands relationships not technology
• The killer app enabling behavior
• Embracing values
• Community-based advertising
• Integrating information and interaction

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ABACSiemens

• Dr. Robert Davis